The 2026 South African budget has increased the single discretionary allowance to R2 million per adult, allowing couples to transfer up to R4 million offshore annually with reduced paperwork. This change simplifies moving funds abroad but experts warn of potential tax and exchange rate pitfalls.
South Africa's 2026 Budget introduced changes to offshore transfer rules, raising the single discretionary allowance (SDA) to R2 million per adult per calendar year. Previously, such transfers required more forms, but now adults can use this allowance without a SARS tax clearance certificate.
For married couples, this means up to R4 million can be moved offshore each year more easily. Additionally, the foreign investment allowance permits another R10 million per person, subject to SARS and authorised dealer requirements, potentially allowing couples R24 million annually if rules are followed.
Therese Grobler, head of wealth management at Momentum Financial Planning, emphasised the need for proper structuring. "As South Africans are now able to externalise larger amounts more efficiently, the conversation should not end with how much can be moved offshore, but rather how those assets should be held to protect and preserve wealth over time," she said.
Harry Scherzer, CEO of Future Forex, highlighted common issues with transfers. He noted that shortfalls often result from exchange rate differences, bank margins and timing. "If you can’t see the underlying rate and the spread, you’re effectively signing a blank cheque on pricing. Those numbers should be transparent so clients can make a rational and informed choice," Scherzer explained, citing examples like a 2% margin costing R20,000 on a R1 million transfer.
